Income Needed to Buy in Boston
Common Question: 'How much income do I need to buy a house in Boston?' Based on the median home price of $720,000, lenders typically look for an annual household income of roughly $50,400. This ensures your payment stays below 28% of your gross pay.
Closing Costs in Massachusetts
Don't forget cash to close. In Massachusetts, buyer closing costs typically range from 2% to 5%. For a home in Boston, you should budget between $14,400 and $36,000 on top of your down payment.
Rent vs Buy in Boston
Is it better to rent or buy in Boston? With a calculated monthly payment of ~$5,040, buying is currently more expensive monthly than the average rent. However, buying locks in your housing cost against future Massachusetts inflation.
Hidden Costs: Property Taxes
Generic calculators often get Boston wrong because they underestimate taxes. Our Boston Mortgage Calculator uses the specific Massachusetts property tax rate of 1.1%, which adds roughly $660/mo to your real payment.
First-Time Buyer Tips (FHA & PMI)
First-time buyers in Boston often utilize FHA loans. Note that putting less than 20% down will trigger Private Mortgage Insurance (PMI), which can add 0.5-1% annually to your loan balance until you reach 20% equity.